Bonuses Fuel a [Pounds Sterling]300 a Day Rise in House Prices; QUALITY SECTOR DRIVES HIGHEST INCREASE EVER RECORDED

Bonuses Fuel a [Pounds Sterling]300 a Day Rise in House Prices; QUALITY SECTOR DRIVES HIGHEST INCREASE EVER RECORDED

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Byline: MIRA BAR-HILLEL

HOUSE prices in London are rising by [pounds sterling]300 a day, with the value of homes in the capital's most wealthy areas more than [pounds sterling]300,000 higher than a year ago, it was revealed today.

Prices rose by almost three per cent last month, despite a dip in the rest of the country, adding [pounds sterling]9,000 to the value of the average home in just 30 days.

Across the capital, house prices are up by more than 23 per cent on this time last year, according to figures from property website Rightmove.

The largest rises were fuelled by the demand for quality property in select areas from recipients of City bonuses and foreign buyers. The average asking price in Greater London is now [pounds sterling]355,097. The trend widened the gap with the rest of the country, where prices overall went up by 13 per cent to an average of [pounds sterling]221,000 and actually fell slightly in the past month.

Analyst Ed Stansfield of Capital Economics said: "There has been an unseasonal surge in house prices in late autumn, probably fuelled by people in line for City bonuses. …